The December 31, 2021, statement of financial position of Bordeaux Corporation includes the following items: 9% bonds payable due December 31, 2028 P3,081,000 The bonds were issued on December 31, 2018, and have a face amount of P3,000,000 with interest payable semi-annually on July 1 and December 31 of each year. On January 1, 2022, Bordeaux retired P1,000,000 of these bonds at 98. What amount should Bordeaux report on the company’s 2022 income statement as gain or loss on the retirement of the bonds?
The December 31, 2021, statement of financial position of Bordeaux Corporation includes the following items: 9% bonds payable due December 31, 2028 P3,081,000 The bonds were issued on December 31, 2018, and have a face amount of P3,000,000 with interest payable semi-annually on July 1 and December 31 of each year. On January 1, 2022, Bordeaux retired P1,000,000 of these bonds at 98. What amount should Bordeaux report on the company’s 2022 income statement as gain or loss on the retirement of the bonds?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The December 31, 2021,
9% bonds payable due December 31, 2028 P3,081,000
The bonds were issued on December 31, 2018, and have a face amount of P3,000,000 with interest payable semi-annually on July 1 and December 31 of each year. On January 1, 2022, Bordeaux retired P1,000,000 of these bonds at 98. What amount should Bordeaux report on the company’s 2022 income statement as gain or loss on the retirement of the bonds?
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